The price on a jewellery bill is always more than the gold rate you saw that morning. That gap is not a mystery: it comes from a short list of charges, and you can check each one yourself.
The three parts of the bill
1. Gold value. The weight of the piece multiplied by the shop's rate for its karat that day.
2. Making charges. What the shop charges for the design and labour. This can be a percentage of the gold value or a fixed amount per gram. Plain chains usually cost less to make than detailed bridal sets.
3. GST. Gold jewellery generally carries 3% GST, and bills usually apply it to the gold value and making charges together. Some bills list making charges separately at a different rate, so read the tax lines on yours. Tax rates can change, so confirm the current rate on the bill.
Stones, enamel and certificates are often added on top as separate lines.
A worked example
These round numbers only show the method. They are not today's rates.
Say you buy a 10 gram 22K chain, the shop's 22K rate is Rs 9,000 per gram, and making charges are 10%.
| Line | Sum | Amount |
|---|---|---|
| Gold value | 10 g x Rs 9,000 | Rs 90,000 |
| Making charges | 10% of Rs 90,000 | Rs 9,000 |
| Subtotal | Rs 99,000 | |
| GST at 3% | 3% of Rs 99,000 | Rs 2,970 |
| Total | Rs 1,01,970 |
So the piece costs about 13% more than the bare gold value. A small change in the making charge moves the total by much more than a small change in the gold rate on the same day.
Where you can save
- Compare making charges, not only gold rates. Rates across shops in one city are often close. Making charges can vary widely.
- Ask how wastage is charged. Some shops list a "wastage" percentage on top of making charges. Ask for it to be written clearly on the bill.
- Check the weight of stones. Stones should not be charged at the gold rate. Ask for the net gold weight to be listed.
- Look at resale terms. Ask what deduction applies if you sell or exchange the piece later. Making charges and GST are usually not returned.
Check a quote yourself
Enter a shop's quote into our gold jewellery price calculator and compare the total with what you were told. For purity and hallmark checks, read 22K vs 24K gold.